Production Costing Scrap Method


I am currently in AX 2012 R2 trying to figure out how to account for the error quantities that are entered in during the production process. I have come across the following:

Production control > Setup > Production control parameters > Standard update > Scrap Method and Scrap Account

The two choices are Allocation and Srap Account. These are used when production is Ended.

Currently, I have been able to see the allocation method work, however, when I change the scrap method to the Scrap account and assign a ledger account to post to, I am not seeing any difference. When I post an error quantity, I am just seeing the production substitution variance account being hit instead of the cost of the error quantity going to the scrap account assigned in the parameters.

I have verified on the End job class form the scrap method is labeled as scrap account with the ledger account, and I have also verified that the account for substitution variance and the scrap account are not pointed to the same ledger account.

Can anyone help with this issue? I would rather be able to use the scrap account method based on its description, but I cannot figure it out. Please let me know if you need further clarification or details.

Thank you!!!


Anybody able to help with this? It is very confusing to me why setting the scrap method in the parameters has not changed the method by which the error quantities are posted to the ledger.